The 24th Congress of the Communist Party of India (Marxist) expresses deep concern over the unconditional surrender of Government of India to the Tariff War unleashed by US President Donald Trump, sacrificing the interests of the country, peasantry, other working people and the domestic industries.

The US has imposed 10% baseline tariff on imports from all countries on 5th April 2025 and variable “reciprocal tariffs” ranging up to 49% on different countries. On India it has imposed 26% reciprocal tariff. Unlike many other trading partners of the US, India has capitulated to the diktats of Donald Trump and is going ahead with plans to ease tariff and non-tariff barriers for US products through bilateral discussion. The Central Government is desperate for finalising Free Trade Agreements with the European Union, New Zealand and other countries.

Howard Lutnick, the US Commerce Secretary, asserted that India should open its agricultural market and agriculture cannot be ‘off the table’ in the negotiation of the Bilateral Trade Agreement. It is reported that India has already signalled willingness to have a zero-duty framework on imports of specific quantities of lentils and peas in line with the agreement with Australia for import of fixed quantities of lentils at zero duty. In the context of huge subsidies to American farmers, it is very clear that any Bilateral Trade Agreement will be extremely unequal.

Big American Commodity Cartels are raising the bogey of high domestic subsidies in India and trade barriers. The Bilateral Trade Agreement under discussion will be the death-knell of dairy farmers as the US dairy exports to India will make a quantum jump if tariffs and market restrictions are lifted.

The objective of the Trump threats is to undermine even the meagre protection that has been accorded to the agricultural sector with a large number of peasants and agricultural workers who are dependent on this sector for subsistence. The total population of the cultivators in India is higher than the total population of the US. The average tariff on agricultural products at 39% is nearly one third of the permissible bound rate under WTO. The move of the US in to compel India to completely open up Indian agriculture to US imports.

The US Wheat Associates claim that India has high levels of domestic support and trade distorting high tariffs. They are estimating a big increase in economic returns to US producers, an increase to the tune of $792 million by 2031/32. Similarly, in the case of maize, there is a push to remove India’s import prohibition on genetically modified maize as well as on ethanol with the expectation of windfall gains for the USA to the tune of $300 million. Soyabean, almond, pistachio, walnut, apple and horticultural crops are all up for negotiation. US based Commodity Cartels are ruling the roost.

All negotiations are being done without taking State Governments or Parliament into confidence. Such Agreements also do not assure the implementation of International Labour Standards.

While countries like China, Canada, Mexico etc., made a resolute push-back against Trump’s tariffs and rallied to defend their economic interests, India has chosen to capitulate and surrender its national interests. Notably, Canada and Mexico with more than 70% of exports to the USA did not blink an eye before hitting back, while India with 18% exports to the USA is refusing to stand up against the strong-arm tactics of the USA. The recent tie-up of Airtel and Jio with Elon Musk’s company Starlink at the behest of the government even as the US President Trump continues to humiliate India is the latest such instance. Apart from agriculture, the interests of the MSMEs across sectors like generic pharmaceuticals to auto parts and millions of workers across these sectors are also going to be adversely hit.

The CPI(M) demands that the Indian government should not succumb to the ‘grand’ imperial designs of the Trump 2.0 regime. The US must stop the Tariff War. Any attempts to surrender to US imperialism will be ferociously resisted.

Withdraw from Trade Negotiations with USA and all Unequal FTAs!
Stop Kowtowing to Imperialist Interests!
Fight against Trump’s Tariff War!